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The Passive Income MD Podcast

#211 Guide to Advanced 1031 Exchange Strategies

May 13, 2024
Dr. Peter Kim shares advanced 1031 Exchange Strategies, including partial exchanges and construction exchanges. He discusses the importance of qualified intermediaries, 180-day completion, reverse exchanges, and specific rules like the 45-day identification period and the three property rule. The episode highlights smart tax planning and leveraging syndication ladder for passive real estate investments.
11:53

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Quick takeaways

  • Utilizing a 1031 exchange can help defer capital gains tax and enhance wealth compounding potential by reinvesting in new properties.
  • Exploring advanced 1031 exchange strategies like two-party exchanges and lazy man's exchanges can offer diverse options for wealth growth and tax deferral.

Deep dives

Basics of 1031 Exchanges

A 1031 exchange allows swapping one property for another to defer capital gains tax. By shifting proceeds into a new property, you can avoid hefty taxes on investment gains, enhancing your compounding wealth potential. The process involves an intermediary and strict timelines for property identification and closing. Beyond the standard delayed exchange, there are options like partial exchanges for diversification and simultaneous exchanges for immediate swaps.

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